With this issue Unasylva begins a regular series of Commodity Reports dealing with the production, consumption, foreign trade, and market prospects for the principal forest products. It is planned that these reports will deal with the following commodities: sawn softwood, pulp and paper, pitprops, railway sleepers, hardwoods, fiberboards, and plywood. For each of these commodities Unasylva will issue at least one report in the course of each year but more frequent reviews will be carried for softwoods and for pulp and paper.

THE manufacture of fiberboard1 arose out of attempts to utilize the wood waste resulting from paper manufacturing. The fiberboard industry, which originated in the United States of America about 1914, passed through a long development period and did not grow rapidly until after 1930. During the past ten years it has become strongly established in North America and in Northern Europe and has shown considerable expansion in other regions as well.

1 Fiberboard, as discussed in this report, refers to boards sheets or rolls, used mainly in building, of which the chief raw material is wood. Raw materials may be in the form of pulpwood, wood pulp, waste paper, sawmill waste, screenings, etc. Gypsum board and plaster boards are excluded.

Hardboard (Wallboard) is a general term applied to fiberboard (hard and semihard) from 3 to 7 mm. (1/8 to 1/4 inch) in thickness, used primarily in partitions, side walls, and other construction work.

Insulating board refers to insulating material in sheets or rolls usually from 8 to 20 mm. (5/16 to 3/4 inch) in thickness with porous structure and good thermal and acoustic insulating properties. The fibers are sized and felted together to contain a large quantity of entrapped or "dead" air.

The statistics of some countries do not distinguish between fiberboards in which the chief raw material is wood and fiberboards where the chief raw material may be bagasse, straw, gypsum, etc., and thus not all figures are directly comparable.

Manufacturers of fiberboard have found ways of utilizing wood not suitable for lumber or papermaking, such as the smaller trees, tops, etc. Many new factories are built adjacent to sawmills, pulpmills, and other wood-using industries so as to utilize wood which would otherwise be wasted. This is a positive step toward securing more complete wood utilization through the integration of wood-using industries.

While originally developed to utilize wood waste and inferior woods, where economic supplies of such raw materials are inadequate or for other reasons, the fiberboard industry may compete with other industries for its wood supplies.

The fiberboard industry has two great advantages over other wood-using industries: (1) it can utilize 95 percent of its raw materials and (2) it is not tied down to any definite species, shape, or condition of wood, as the fiber process treatment can be varied to suit any type of wood, provided the supply is large enough to make its use economical.

Plans for additional manufacturing facilities are being pushed ahead in many countries. Any advances in technology which will result in reducing the minimum economic capacity of manufacturing units below 8,000-10,000 tons per annum will undoubtedly lead to a big increase in the use of wood waste presently not contributing its full value to the world's economy. In addition, smaller plants will permit more countries to establish manufacturing facilities of their own.

Owing to the relatively cheap price of fiberboard, the low cost of installation, its insulation against cold and sound, its proven serviceability, and its growing number of uses, the demand for it is likely to continue in both producing and importing countries. Construction of new capacity in several European countries may not only satisfy local demands but may give rise to surpluses for export. However, some concern has been felt in Scandinavia that, in the near future, domestic production capacity may exceed local consumption requirements and the demands of importing countries. This concern reflects the difficulties importing countries may have in purchasing their requirements rather than any diminution in their needs.

PRODUCTION IN 1947

Most of the world's present productive capacity for fiberboard is centered in North America and Europe. In 1947, Canada and the United States produced more than seven tenths of the estimated world output of 1.7 million metric tons; European countries, two tenths; and other regions, the balance.

1947 FIBREBOARD PRODUCTION

(Thousand metric tons)

Country

Quantity

United States

1,100

Sweden

235

Canada

124

Norway

36

Finland

30

United Kingdom

24

Australia

21

All others

130

The United States is the biggest fiberboard producer and production continues to increase, output in 1947 of 1.1 million metric tons being 25 percent greater than 1946 production and about double the prewar figure. Production is in the hands of 15 companies with 16 plants, of which only two produce hardboard. Insulating board and hardboard are produced in the ratio of 5 to 1. In its manufacturing operations the industry employs approximately 10,000 employees. Existing plants are operating close to rated capacity and there is apparently no shortage of labor or raw material. American mills are relatively large, in relation to European standards.

Sweden, which first produced fiberboards in 1929, is the most important producer in Europe. Despite drought conditions which decreased water power, aggravated fuel shortages, and hampered production, the 1947 output of 235,000 tons represented a considerable improvement over the 1946 output of 218,000 tons and the 1939 output of 120,000 tons. There are said to be 14 plants with a total capacity of 250,000 tons. The Swedish factories are almost all situated on the northeast coast (Norrland) and are principally set up in conjunction with sawmills. Hardboards account for about 60 percent of total production.

Canadian production of fiberboards in 1947 of 124,000 tons was about 25 percent above 1946 and twice that of 1939. Canadian factories were operating practically at full capacity during 1947.

In Norway, the 1947 production of fiberboards was 36,000 tons, approximately 72 percent of productive capacity. Production of fiberboards in Norway has been increasing steadily since the first factory was established in 1932 with a capacity of 3,000 tons.

In Finland, 1947 production amounted to over 30,000 tons. The first fiberboard factory was built in 1930 and before the war was the largest of its kind in Europe, with a capacity of 30,000 tons. There are now seven mills with a total capacity of about 75,000 tons.

The United Kingdom produced about 24,000 tons in 1947 as against 23,000 tons in 1946, and 8,000 tons pre-war when bagasse was the chief raw material.

In Italy, the 1947 output of fiberboard was 18,000 tons, primarily hardboard. This was a considerable increase over the 8,000 tons produced in 1946. Prewar production was negligible.

In Czechoslovakia, the latest reports of production are 16,000 tons a year. In part this has been accomplished by the establishment of a factory to use logging and sawmill waste, which formerly was burnt for fuel. It is said that it is competing for raw materials with plywood factories.

Fiberboard production in Belgium for 1947 was about 15,000 tons, an increase of almost 100 percent over 1946.

In Germany, the prewar output of fiberboards was manufactured by about 18 factories. Production in the western part of the country is now only a fraction of the prewar level of about 72,000 tons. One German fiberboard factory is being transferred as reparations to France.

In Denmark, 1947 fiberboard production was 11,000 tons as compared with 9,000 tons in 1946.

In Austria most of the plants suffered heavy war damage and production had practically come to a standstill in 1945. Manufacturing operations are slowly recovering. A new hardboard factory, which commenced operations in 1947, is using local raw material entirely. Total 1947 output reached 10,000 tons.

In Japan, 1947 fiberboard production was about 12.000 tons.

In Australia, the production of hardboard and insulating board in 1946 and 1947 was about 21,000 tons. Insulating boards are produced using bagasse as a raw material. Hardboard accounted for about 45 percent of production. The fiberboard industry in Australia has been working at capacity levels.

In New Zealand, the output of fiberboard fell somewhat below the capacity level of 11,000 tons as a result of electric power shortage. New Zealand has but one plant which up to this time produced only insulating board. Equipment for the manufacturing of hardboard has now been installed and is expected to be in operation in 1948.

There is a limited production of fiberboard in both France and Switzerland. Some attempts have been made to produce fiberboard in Argentina but with little success. There is one small factory in the Chaco region which produced some low-grade boards. In Peru over 400 tons of fiberboards were produced in 1943.

Information concerning the capacity and production of fiberboards in other parts of the world is not readily available. It is known that the U.S.S.R. produces fiberboard and that in the Far East there is a limited production for which the raw materials may be wood, bagasse, bamboo, straw, etc.

CONSUMPTION OF FIBERBOARDS

At present production lags behind demand. As indicated later, Sweden, Canada, the United States, Finland, and Norway are the major exporting countries, other producing areas having to supplement their domestic production by imports.

When the data for consumption are computed on a per caput basis, the large differences between countries in per caput consumption indicate the possibility of increased demands.

PRESENT CONSUMPTION OF FlBREBOARDS

(Kilograms per caput)

Sweden

24

Norway

12

United States

8

Canada

8

Australia

2.5

United Kingdom

1.2

Union of South Africa

1.0

Argentina

0.3

Colombia

0.2

Japan

0.1

India

0.1

The growth in per caput consumption in recent years is indicated by the following figures:

Year

Sweden

United States

Canada

1939

12

1

3

1944

18

7

8

1946

24

8

8

Perhaps the chief reasons for the increased demand for fiberboards are that it has many uses and a favorable price compared with the high prices of competitive building materials. The fact that most factories throughout the world are now operating at, or near, capacity levels indicates that only lack of supplies would limit further increases in consumption, provided import restrictions, due to the world shortages of dollar exchange. could be lifted.

INTERNATIONAL TRADE

Sweden, Canada, the United States, and Finland account for almost all fiberboard exports, with Sweden being by far the largest exporter. World exports have increased considerably in the postwar years as can be seen from the following figures for 1945, 1946, and 1947.

FIBERBOARD EXPORTS

(Metric tons)

1945

1946

1947

Sweden

15,400

68,800

75,000

Canada

43,100

38 000

18,000

United States

44,200

26 300

38,000

Finland

15,500

21,200

24,000

Norway

small

6,400

4,600

All other

4,500*

6,300*

5,600*

WORLD TOTAL

123,000*

167,000*

165,000*

* Estimated

Swedish exports in 1947 amounted to 32 percent of production, United States exports were 3 percent of production, and Canadian exports were equal to 15 percent of production.

In 1934 Swedish exports amounted to 41 percent of total production, in 1935 to 35 percent, and in 1936 to 30 percent of production. The prewar exports of the United States are estimated to have amounted to 20-25 percent of total production. Canadian exports in 1935 and 1936 accounted for from 35-40 percent of total production. These figures show that the domestic market in the principal exporting countries is absorbing a larger percentage of total production than in the prewar period.

Wallboards comprise about 65 percent of all Swedish exports, and about 32 percent of all United States exports. Canadian exports of wallboards are not recorded separately.

PRINCIPAL IMPORTING COUNTRIES

(Metric tons)

1947

1946

1945

United Kingdom

35,000*

37,600

27,700

United States

30,000

25,000

26,500

Canada

19,000

11,700

9,700

Argentina

11,000*

...

...

Denmark

9,000*

12,000

9,900

Netherlands

9,000*

...

8,000

Philippine Republic

9.000*

7,300

900

Belgium

8,000*

...

6,300

Union of South Africa

8,000*

9,000+

2,700

* Estimated.... Not available+ Incomplete

While fiberboard exports originate primarily in Northern Europe and in North America, the markets for these exports are the industrialized countries in all regions of the world. The United Kingdom is the largest importer. Even though the United States is the largest producer of fiberboards, and in addition a large exporter. it provides the second largest import market for fiberboards. It is difficult to estimate the eventual size of import demand for fiberboards in many countries since at present the export supplies are not available and the lack of hard currency limits present demands.

PRICES AND MARKET CONDITlONS

During the past few years, exports of fiberboard although increasing, have been less than potential demand owing to exchange difficulties and governmental restrictions.

In 1945 Swedish internal market prices stood at about the same level as averages for previous years, although production costs had risen. Export prices also stood at 1943 level. In 1947, with the general rise in timber prices and costs of labor, prices for fiberboards were increased and Swedish prices are now higher than North American prices.

In the United Kingdom fiberboard imports for 1938, 1946, and 1947 were valued at £17, £33, and £38 respectively, per metric ton, representing an increase of 95 percent for 1946 and 120 percent for 1947 over 1938 prices.

Exports from the United States have increased in average value from about 80 dollars per ton in 19371939 to 120 dollars per ton in 1947, while the average Canadian export values for the same periods were 65 and 90 dollars per ton. The Canadian and U. S. prices noted above are not directly comparable because of the variation in composition of the material exported by the two countries

OUTLOOK FOR THE FUTURE

To meet the rising demand for fiberboard as a building material, especially for reconstruction to meet accumulated arrears in building and maintenance, many additions are being made to existing plants and new factories are being erected or planned. A number of these new factories will be in countries which have not previously manufactured fiberboard, and are being established as part of the drive toward complete utilization of wood and elimination of wastage through the proper integration of wood-using industries.

Dealers' stocks in the United States are reported to be in a better position than at any time in the past five years. As a result of this increasing capacity and the currency difficulties experienced by importing countries, some concern is felt in the Scandinavian countries that the ready market of the past will not be so favorable after this year and that some curtailment of production may be necessary. On the other hand, the advantages and case of using fiberboard will doubtless result in continuing increased total world demands for this material, whether domestically produced or imported.

Additions and new installations under construction or planned have been reported for the following countries.

Australia. Additions to the existing hardboard plant should bring production to 13,000 metric tons in 1948 and a further increase in capacity to 20,000 tons is proposed.

Austria. Production is expected to reach 18,000 tons in 1948 and 33,000 tons by 1950.

Finland. When a new factory is completed and the other mills receive additional machinery necessary for making hardboard, the total capacity of the industry will reach 140,000 tons per year, of which about half is softboard and half hardboard.

France. German equipment is being transferred to Landes; furthermore a factory with an estimated capacity of 30,000 tons is being erected.

French Union. Preliminary plans for industrialization of the French territories in Africa propose the establishment of plants with capacities totaling 185,000 tons as follows: Ivory Coast - 50,000; French Equatorial Africa - 60,000; French Cameroun - 75,000. However, immediate plans contemplate only one factory of 10,000 tons in Gaboon which is to use waste from logging, and from sawmilling and plywood-manufacturing operations.

Netherlands. A new factory is to produce 18,000 tons of hard and insulating fiberboard from straw, since wood supplies are not available.

New Zealand. A new installation for the production of hardboard should bring New Zealand's 1948 production to 20,000 tons.

Sweden. Output for 1948 should exceed 250,000 tons and may approach 300,000 tons.

Switzerland. Plans to double Swiss output by 1949 have been prepared.

United Kingdom. Establishment of a factory in Scotland which will use low-grade material not suitable for lumber is in the planning stage.

U.S.S.R. At least two new factories were under construction in 1947 and should be in operation in 1948.

United States. Additions to old plants and new construction are expected to bring 1948 capacity and output close to 1.3 million tons.

Yugoslavia. Plans are being made to obtain a plant from Sweden capable
of producing 6,000 tons of hardboards and 6,000 tons of insulating boards annually.
At a later stage it is expected that the productive capacity for insulating
boards will be doubled.

COAL production, which is of primary importance for the reconstruction of Europe,
is very closely bound up with pitwood supplies. Although the total consumption
of pitwood is approximately 30 million cubic meters of roundwood, international
trade in this product only affects North America, which is an exporter, Europe,
of which certain countries are importers and others exporters, and the Near
East, which is definitely an importer.

The United States, whose production is a third of world production, Japan,
South America, South Africa, Australia, and the Union of Soviet Socialist Republics
produce their own pitwood. On the other hand, the mining centers of Western
Europe depend essentially on imports, particularly on those from Scandinavia.
The amounts involved in international trade vary between 5 and 7 million m3
®.

In the international market, pitwood represents a definite commodity. However,
it has a wide range of sources; it can be obtained from any softwood timber
in current use (Pinus, with the exception of Weymouth pine, and Picea),
and from almost all the hard woods (except beech) which are to be found
in Europe. Pitwood comes from young stands of softwood cut off at the root,
from thinning fellings in fully grown hardwood or softwood forests, or from
coppice cuttings at a relatively high rate of rotation. Softwood pit props are
delivered barked, while hardwood pitprops may be delivered simply grooved. A
practice peculiar to the Welsh mines should, however, be mentioned; they use
unbarked rough sea pine (Pinus pinaster) obtained from France (Landes)
or from Portugal.

Variations in the international pitwood trade are due to a number of causes:
(1) they are the immediate consequence of fluctuations in the requirements of
the mines; (2) they sometimes follow an increase in the national production
of countries which are normally importers; and (3) they result, to a lesser
degree, both from an improvement in the utilization of pitprops and from the
use of steel sets and concrete galleries.

Before studying the pitwood market after the Second World War, particularly
in 1947, and the prospective market, it is well to consider the evolution during
the period from 1925 to 1938.

1925 TO 1938

A summary of the position during this period can be obtained from Table 1,
which shows the exports from the main exporting countries, and from Table 2,
which shows the imports of the main importing countries. These tables do not
show Australian imports, which were quite considerable in 1938, the pitwood
trade of the United States of America which can not be specifically identified,
or imports by the Mediterranean countries.

TABLE 1. - PITWOOD EXPORTS, 1925-1938

Country

1925-1929

1930-1934

1935-1938

Average

Average

Average

(Thousand cubic meters-solid volume)

Germany

496.80

658.80

26.75

Austria

94.00

56.20

73.50

Esthonia

112.40

92.40

96.25

Finland

1,420.40

1,463.20

1,888.50

France

11,054.68

437.58

438.62

Latvia

391.40

316.60

351.00

Lithuania

5.40

3.00

8.00

Norway

69.40

34.20

33.50

Poland

1,232.20

250.20

183.00

Portugal

72.20

392.80

383.75

Sweden

539.00

355.20

194.25

Czechoslovakia

350.40

130.20

82.75

USSR

395.60

1,393.40

1,457.00

TOTALS

6,213.88

5,583.78

5,216.87

1 This figure also includes props for use other than in-mines.

TABLE 2. - PITWOOD IMPORTS, 1925-1938

Country

1925-1929

1930-1934

1935-1938

Average

Average

Average

(Thousand cubic meters-solid volume)

Germany

653.00

194.80

143.50

Belgium-Luxemburg

733.20

709.20

630.50

Spain

99.60

67.20

6.00

France

570.80

636.40

169.00

Hungary

211.40

135.60

184.00

Netherland

246.00

290.20

286.00

United Kingdom

2,770.40

2,449.40

2,845.75

Czechoslovakia

159.80

62.20

4.75

TOTALS

5,444.20

4,545.00

4,269.50

Imports. United Kingdom's imports amounted to more than half of the
total and this situation prevailed throughout the whole period. There was a
slight decline about 1932 but it did not last long. The Netherlands and Hungary
kept up their imports, while France, Belgium, and Germany steadily decreased
theirs. The decrease in German and Belgian imports resulted from increased domestic
production, and not from a fall in coal production, whereas in 1936/1937 coal
production in France and the United Kingdom fell slightly in comparison with
the period 1925/1929.

Exports. Finland continued to be the chief supplier, particularly from
1935-1938. Its exports in 1937 amounted to more than 2,000,000 m3
®. At that time Finland was supplying the greater part of the United Kingdom's
pitwood. The U.S.S.R. entered the market in 1929, and from 1929 to 1937 its
exports were at a fairly high level. Portugal's exports increased, and by the
outbreak of war were approximately 300,000 m3 ® a year. On the
other hand, Poland's exports decreased. German exports, as from 1935, fell as
a result of increased coal production and were insignificant in 1938. Swedish
exports continued up to 1932/1933 at the level of approximately 400,000 m3
®, but then declined considerably owing to the use of potential pitwood timber
in the cellulose industries. From 1925 to 1938, however, the pitwood market
was adequately supplied, as a result of the large-scale exports from Finland
and the U.S.S.R.

At the end of the period under review pitwood prices were comparatively favorable
to producers. For example, in 1937 pitwood prices in Finland were £5 a
fathom f.o.b. At that same time sawn timber was selling for £15-£16
per standard f.o.b.

1939 TO 1946

During this period the countries of Europe which were occupied by the Germans
or cut off from their normal suppliers had to exploit their own pitwood resources
to the maximum. This was particularly the case in France, Belgium, the Netherlands,
and Hungary. The United Kingdom, which had been one of the principal importing
countries, was compelled to draw on its immature softwood plantations and considerably
overcut its forests, even to the extent of total exhaustion in certain counties.

At the end of hostilities, Canada and Newfoundland sent considerable quantities
of pitwood to the United Kingdom, and since that date Canada has kept up its
large consignments of pitwood to Europe. And even the United States sent pitwood
to Belgium in 1946. During the same period Finland and Sweden, owing to lack
of coal, were forced to burn large quantities of pitwood.

After the cessation of hostilities, the character of Europe's pitwood market
underwent a complete change. For example, Poland changed from an exporting country
to an importing one after acquiring the Silesian mines. Canada, however, continued
to send considerable supplies to the United Kingdom.

Belgium, and the Netherlands. Finland and Sweden resumed delivery, while Portugal's
exports consisted only of small shipments to England and North Africa. Germany
became self-sufficient, partly on account of the loss of Silesia and partly
as a result of the felling program drawn up by the Allied Authorities. Germany
was even in a position to export certain quantities to France, Belgium, and
the Netherlands, either in the form of dressed timber or of standing timber
handed over on the spot for felling.

During this period after the cessation of hostilities, demand did not outrun
supply. The importing countries found themselves compelled, owing to financial
difficulties, to call upon their own national productive resources; and partial
damage to mining plants resulted in the incomplete fulfillment of mining programs.

POSITION IN 1947

After 1945, the question of European pitwood production and consumption was
handled in London by the Timber Sub-Committee of the Emergency Economic Committee
for Europe and the Production Division of the European Coal Organization. Since
1947, the work of these two bodies has been taken over by the FAO/ECE Timber
Committee, which has made a study of production possibilities, and by the ECE
Coal Committee, which has made recommendations for allocations.

The market position for 1947 was as follows: the production of European countries,
supplemented by imports from Canada, made it possible to cover the requirements
of European collieries. On the whole, supplies to the mines actually exceeded
consumption, as stocks at the mines on 31 December 1947 were greater than on
1 January 1947.

Trade. The principal exporting countries were Finland, with 1,367,000
m3 ® and Canada, with 701,000 m3 ®. The United Kingdom
headed the list of importing countries with 2,883,000 m3 ®.

Production. Tables 3, 4, and 5, taken from the Statistical Bulletin
of the FAO/ECE Timber Committee, show pitwood production, sales, and purchases
for the main countries for 1947. Coal production and pitwood consumption figures
for specified countries are given in Table 6. The pitwood consumption figures
also include timber used in brown coal mining.

TABLE 3. - PITWOOD PRODUCTION, 1946 AND 1947

Country

1946

1947

(Thousand cubic meters-solid volume)

Austria

172

212

Belgium

600

650

Czechoslovakia

405

351

Finland

(1,227)

(1,338)

France

13,164

22,562

Germany

- U.K./U.S. Zone

1,825

2,082

- French Zone

710

1,532

- U.S.S.R. Zone

...

(692)

Hungary

162

197

Ireland

13

11

Italy

160

320

Luxemburg

77

65

Netherlands

44

30

Norway

76

(96)

Poland

1,400

1,500

Sweden

250

220

Switzerland

50

15

Turkey

237

146

United Kingdom

1,138

572

Canada

(863)

(870)

TOTALS

12,573

13,461

Note: The figures in parentheses relate, not to production,
but to exports1 Of this production, 48,000 m3 ® comes from fellings
in Germany.2 Of this production, 2,000 m3 ® comes from fellings
in Germany.

According to the ECE Coal Committee, the estimates in respect of participating
countries both for coal production and pitwood consumption have generally proved
to be correct during 1947.

TABLE 6. - COAL PRODUCTION AND PITWOOD CONSUMPTION IN 1947

Country

Hard Coal Production (excluding opencast)

Total Pitwood Consumption (including that used in brown
coal mines)

Thousand m.t.

Thousand m3
®

Austria

178

150

Belgium

24,390

1,021

Czechoslovakia

16,305

541

France

45,235

2,488

Italy

1,222

214

Netherlands

10,104

223

Poland

59,130

1,709

Turkey

3,897

191

United Kingdom

192,433

2,626

Bizone (Germany)

71.128

2,398

Saar

10.485

401

National production goals in the various countries, taken as a whole, were
exceeded by 8 percent, although France reached only 89 percent of her estimated
production. On the other hand, Belgium, with 650,000 m3 ®, and
the United Kingdom, with 572,000 m3 ®, reached 165 percent and
170 percent respectively of their estimated figures.

Estimated imports were exceeded by 19 percent, and the United Kingdom, thanks
to additional supplies from Finland, U.S.S.R., the Soviet Zone of Germany, and
Canada received 47 percent more than was estimated, the Netherlands bought more
Finnish pitwood than had been originally planned, but other countries did not
entirely complete their import programs.

Thus, the main importing countries were able to build up larger stocks by the
end of 1947 than had been expected, owing to larger availabilities and a slight
overestimate of pitwood consumption requirements for the year.

Prices. During the postwar period, pitwood prices rose sharply. Average-prices
(c.i.f.) in England for pitwood from Canada, Finland, and Sweden were as follows:

Country

1938

1946

1947

1947 Price Index

£ s. d.

£ s. d.

£ s. d.

(1938=100)

Canada

1105

41910

5153

378

Finland

1143

3 168

4125

270

Sweden

1112

4 64

277

In 1947 timber experts, meeting at Paris in connection with the Committee of
European Economic Cooperation, used an f.o.b. price of $12.7 per cubic meter
in estimating the cost of the pitwood import program.

1948 SITUATION

The supply position at the beginning of 1948 was better than that in 1947.
The stock position at the mines on 1 January 1948 in comparison with that on
1 January 1947 is shown in Table 7.

TABLE 7. - STOCKS IN MINES

Country

1947

1948

(As at 1 January)

(As at 1 January)

(...Thousand m3
®...)

Austria

...

144

Belgium

747

333

Czechoslovakia

406

121

France

1,181

2,006

Italy

20

82

Netherlands

130

1833

Poland

245

61081

Turkey

129

16

United Kingdom

1,485

887

Saar

80

215

Bizone (Germany)

11,122

1,318

TOTALS

5,54,5

126

1 Including stock build-up, viz., as at 1 January 1948:
666,725 m3.

Some countries possess relatively large stocks of pit. wood either dressed
at the felling areas or held by producers and retailers, for example:

Belgium

163,000 m3 ®

Bizone (Germany)

666,725 m3 ®

Czechoslovakia

215,000 m3 ®

Finland

613,000 m3 ®

France

717,000 m3 ®

The present stock position is relatively favorable, but what are the prospects
for the future?

Since coal is of such importance for the economic reconstruction of Europe,
it is expected that everything possible will be done to fulfill coal production
programs in 1948. The demand for pitwood will therefore be considerable. It
has been possible to estimate the demand on the basis of the average pitwood
consumption factors per ton of coal produced (varying according to the country
concerned), due allowance being made for the fact that it will not be possible
to resort to metallic sets owing to the shortage of steel. The factors adopted
are indicated in Table 8. This analysis of requirements has been made by the
Coal Committee of the ECE.

Furthermore, the FAO/ECE Timber Committee has studied, for the year 1948, the
anticipated domestic pitwood production of all European countries, except the
U.S.S.R., and export availabilities in Canada and the U.S.S.R.

These studies have shown that the total pitwood requirements of Austria, Belgium,
Czechoslovakia, France, Greece, Ireland, Italy, Luxemburg, Netherlands, Norway,
Poland, Portugal, Sweden, Turkey, United Kingdom, and the three Western Zones
of Germany amounted to 14,844,000 m3 ®, while their pitwood production
totaled only 14,355,000 m3 ®, thus leaving a deficit of 489,000
m3 ®. Import needs within these countries amount to 4,877,000 m3
®, while export availabilities, including added Canadian and Soviet exports,
amount to 4,388,000 m3 ®. The 1948 expected deficit is therefore
not large since it represents only 3 percent of total estimated consumption.
It could easily be covered by present stocks.

TABLE 8. - PITWOOD CONSUMPTION PEP. TON OF COAL PRODUCED

Country

Coefficient

(Cubic meters per metric ton)

Austria

0.05901

Belgium

0.04186

Czechoslovakia

0.02006

France

0.05500

Italy

0.03357

Netherlands

0.02207

Poland

0.02890

Turkey

0.04892

United Kingdom

0.01365

Saar

0.03825

Bizone (Germany)

0.03371

Estimated exports include 760.000 m3 ® from Canada and 1,100,000
m3 ® from Finland, while imports of 2,528,000 m3 ®
and 500,000 m3 ® are forecast for the United Kingdom and Belgium
respectively. The United Kingdom, taking 52 percent of total imports, thus remains
the largest importer.

This situation could be improved further if Sweden, which has declared an availability
of 145,000 m3 ®, could increase this to 300,000 m3 ®,
as it intends to do if its coal requirements are met. Yugoslavia also might
be prepared to export 80,000 m3 ® of pitwood if its special equipment
needs were met. There is likewise reason to hope that Finland, which has declared
1,100,000 m3 ® for export, will exceed this figure in view of its
large-scale exports in previous years. Finally, there is a possibility that
certain Eastern European countries will enter the market and so help to close
the gap in pitwood supplies, and that Austria and Czechoslovakia will have export
availabilities.

On the basis of the data at present available the ECE Coal Division has recommended
the allocations shown in Table 9.

Although the reported stock position as of January 1948 is fairly satisfactory
on the whole, it should not be forgotten that the Ruhr collieries finished the
year 1947 with very low stocks, and it might be thought necessary to devote
part of the German export availabilities to building up the Ruhr stocks. In
this connection it should be noted that mine pithead stocks of pitprops on 1
January 1948 were dangerously low, totaling only 166,000 m3 ®.
However, at the same date cut timber stocks amounting to 660,000 m3
® were available. Nevertheless, if the production plan calling for 86,000,000
metric tons of coal is carried through, 4,154,000 m3 ® of pitwood
will be required. Assuming that pitwood imports from the Soviet Zone of Germany
will amount to 500,000 m3 ® and those from the French Zone to 42.000
m3 ®, and allowing for exports of 100,000 m3 ® through
cutting concessions, production in the Bizone should reach 3,712,000 m3
®.

The Bizone authorities are known to have fixed fellings for 1948 at 30,000,000
m3 ® of unbarked timber of all kinds. In theory, therefore, these
fellings should make it possible to obtain the 3,712,000 m3 ® of
pitwood required. If, however, there is also a big demand for pulpwood and fuelwood,
the rebuilding of normal stocks may prove somewhat difficult.

What has just been said does not apply to the mines of the Saar, which are
now integrated in French economy and are supplied by the Saar itself and by
imports from the French Occupation Zone (400,000 m3 ® in 1947).
Stocks on 1 January 1948 amounted to 83,000 m3 ®, representing
about three months' production.

The over-all situation is therefore satisfactory. Certain factors which may
alter somewhat the appearance of the pitwood market must however be pointed
out.

In the Scandinavian countries pulpwood competes very keenly with pitwood. This
competition is inevitable. It results, on the one hand, from perfectly integrated
forest exploitation and, on the other, from the considerable demand for cellulose.
Indeed, in Sweden, where there are abundant standing resources available, the
presence of a large number of pulping plants favors the production of pulpwood
to the detriment of pitwood. Pulpwood at present finds a very favorable outlet
in North America, thereby making available the hard currency necessary to Sweden.

Great Britain is to buy from Canada 760,000 m3 ® of pitwood and
will thus need to have the necessary currently at its command; otherwise it
will be forced to seek additional supplies from the European market, which might
then show a net deficit.

Finally, owing to the insufficient coal supplies in certain countries, especially
in Germany, pitwood is sometimes used for heating in great urban centers. However,
this situation is offset in other countries by a better coal position which
makes it possible to obtain pitwood from plantations of copsewood normally cut
for firewood. This can be particularly valuable for mines using a high percentage
of small timber.

PROSPECTS FOR 1949 TO 1951

The situation has been examined by the Coal Committee of the Economic Commission
for Europe, and statistics have been compiled showing the coal production, pitwood
consumption, import requirements, and export availabilities for the principal
European countries. An examination of these statistics reveals an anticipated
deficit amounting to 5 percent of requirements in 1949 and increasing to 9 percent
in 1951. This increase in the deficit is in great measure due to an increase
of coal production in the European countries under review from 530,660,000 tons
in 1939 to 606,780,000 tons in 1951 - an increase of approximately 13 percent
- while pitwood production in the same countries, including imports from Canada
and the Soviet Union, rises from 14,036,000 m3 to 15,368,000 m3
® - an increase of only 9 percent. It seems that in 1951 the deficit in pitwood
will be 1,431,000 m3 ®.

Therefore, if pulpwood offers much competition with pitprops for the available
roundwood supplies, it will be difficult to overcome the deficit. Moreover,
those countries which have overcut during the war will be inclined to reduce
their cutting.

It is, however, difficult to make prophecies at the present time. The situation
may in fact be completely changed by the appearance on the market of large quantities
of pitwood from the U.S.S.R. or, on the other hand, by better utilization of
pitwood in modernized mines and by the use of steel sets as steel production
increases. However that may be, in present circumstances, it will be exports
from Scandinavia which will regulate the pitwood market in the economic area
under review.